[38] Government denounces provocations by Turkish and Turkish Cypriots

[39] Cyprus government says US Undersecretary most welcome to visit
Cyprus

Prime Minister Costas Karamanlis concluded a meeting in Athens early
Friday afternoon with visiting German Chancellor Angela Merkel, with
both leaders fielding questions afterwards on issues ranging from the
European constitution to Kosovo, climate change and, expectedly,
bilateral ties, including defence contracts.

Regarding the former, Karamanlis congratulated the German chancellor
for her efforts, which he called "decisive", at achieving a
breakthrough on the European constitution issue at a recent summit in
Berlin.

In response, Merkel referred to Karamanlis as a "political friend" and
praised the Greek government's "productive efforts" on the thorny
constitution issue, whereas she lauded Greece's euro zone-leading
economic growth, in the neighbourhood of 4 percent annually. Both
leaders, in fact, repeatedly called bilateral ties excellent.

Merkel, in Athens for a day-long visit including talks with Greek
leadership, later departed with the Greek premier for a downtown Athens
hotel, where she addressed an event hosted by the Greek-German chamber
of commerce.

On his part, Karamanlis emphasised that Germany is by far Greece's
largest trading partner, while expressing satisfaction over the fact
that the east Mediterranean country is among the top destinations for
German tourists.

"Cultural ties are particularly strong, and there are strong cultural
bonds between our two peoples," Karamanlis said, while also noting the
vigorous presence in Germany of expatriate Greek communities.

Turning to the western Balkans, the German chancellor echoed Athens'
standing policy of supporting the EU prospects of countries in the
region, stressing that this helps the peace process throughout the
region.

Finally, in her opening comments, Merkel expressed her government's
support for the current Portuguese EU presidency's focus on promoting
the Union's maritime policy, citing protection of the marine
environment.

Constitution

Regarding the draft European constitution, which has emerged as a
distinct priority in German foreign policy, Merkel reminded - in answer
to a press question - that the Sarkozy government has promised to back
a new inter-governmental constitutional conference that will ostensibly
lead to a new draft constitution or major reform initiative.

"I do not know anything about changes," Merkel said in reference to
reported comments out of Paris, before citing what she called a
"courageous act" by Nicholas Sarkozy not to broach the issue during the
recent French presidential election.

Moreover, Merkel reiterated her view that the European Central Bank's
(ECB) independence should be maintained and that the Union should works
harder towards achieving a common economic policy to better deal with
international challenges.

"Some, us included, want more of Europe. Others are more guarded,"
Karamanlis noted, while adding that Athens held similar views with
Berlin, as it does with Paris as well.

Kosovo

Regarding the issue of Kosovo, Karamanlis outlined Greece's position
that more time is necessary for a mutually acceptable solution,
"without any side feeling humiliated ... we must not be hasty," he
emphasised.

On her part, Merkel said no solution can be found if each side insists
on maintaining its positions, while reiterating that a solution must
now be found under the auspices of a contact group.

Turkey

Regarding the always timely issue of Turkey's European prospects - and
with general elections in the country on Sunday - Karamanlis once again
detailed Greece's standing position on the matter, namely, "absolute
fulfilment (of criteria and conditions) means absolute (EU)
membership".

Karamanlis said criteria definitely includes respect for human rights
and religious freedoms in Turkey, the latter being an indirect
reference to incessant obstacles thrown up by Turkish bureaucracy and
the judiciary against the Istanbul-based Ecumenical Patriarchate of
Constantinople.

Asked about the elections in Turkey, Karamanlis merely said he hoped
that any new government arising will proceed with rapid steps towards a
European prospect, reforms and improved relations with Greece.

Merkel declined to comment on the elections directly, stressing
however, that Turkey's failure to implement the Ankara protocol is a
problem.

Defence

In answer to questions regarding armaments, given that Germany is one
of Greece's major suppliers of defence equipment, Karamanlis said
provisions of a high-profile defence contract will be fulfilled after
"problems" were resolved.

In answer to a question on Greece's volition to purchase
fourth-generation warplanes, and given that the Eurofighter
consortium's "Typhoon" will surely be amongst the primary candidates,
Karamanlis said any such procurement will be implemented in the most
transparent manner. Additionally, he said Athens wants the largest
participation possible for its domestic defence industry in any future
deal for a new fighter plane.

The German chancellor was scheduled to be received by Greek President
Karolos Papoulias at 7 p.m. (17.00 GMT) before attending a dinner
hosted in her honor at the prime minister's private Rafina area home.

German Chancellor Angela Merkel on Friday roundly praised the booming
trade relations between EU partners Greece and Germany, during a
high-profile address in Athens immediately after talks with Greek Prime
Minister Costas Karamanlis.

The Greek prime minister, in fact, introduced Merkel at the event,
which was also attended by EU Commissioner Stavros Dimas, Foreign
Minister Dora Bakoyannis, Development Minister Dimitris Sioufas and
PASOK deputy and former EU Commissioner Anna Diamantopoulou.

Merkel, in Athens for a one-day lightning visit and talks with Greek
leadership, spoke to the Greek-German chamber of commerce, where she
highlighted the fact that bilateral trade has increased by 40 percent
over the past five years. The German chancellor also stressed that some
two million German citizens choose Greece as a holiday destination
every year, a country she said serves as SE Europe's gateway.

Among others, Merkel expressed satisfaction over her first visit to
Athens, calling Greece the "cradle of Europe", before again citing the
excellent cooperation with the Greek side during the recent Berlin
summit.

Regarding the energy sector, a field that has seen considerable Greek
activity over the recent period, Merkel said the wider goal is to
ensure the triptych of "competitiveness, secure sources and
environmental protection".

In preceding Merkel's keynote address, Karamanlis pointed directly to
what he called significant progress in the Greek economy in recent
years, noting, for instance, that imports have increased by 18 percent.
In also touching on the all-important energy sector, Karamanlis listed
off the recently completed Burgas-Alexandroupolis oil pipeline
agreement and the Turkey-Greece-Italy natgas project.

Finally, Sioufas welcomed Merkel by noting that "in your person we see
modern Germany, modern Europe and modern politics Germany's success
will be the success of all of Europe".

Coalition of the Left, Movements and Ecology (SYN) president Alekos
Alavanos on Friday charged that a new arms race was being advanced with
the United States' missile shield in Europe, commenting on the meeting
of Prime Minister Costas Karamanlis with visiting German Chancellor
Angela Merkel.

Alavanos said that the Greek prime minister had no right to consent to
a renewed arms race but, on the contrary, measures should be taken in
the opposite direction. Alavanos also called for the shutting down of
the US Base in Souda on the island of Crete.

The SYN president said that no prime minister has the authority to
agree to a European Constitution draft plan, underlining that his party
backs the option of a referendum.

Greek Prime Minister Costas Karamanlis will meet with European
Commission President José Manuel Barroso on Saturday in the seaside
district of Vouliagmeni, southeast of Athens, where he will host a
working luncheon for the visiting EU leader, it was announced here on
Friday afternoon.

Prime minister Costas Karamanlis leaves Monday for Sarajevo for a
24-hour visit, government spokesman Theodoros Roussopoulos announced on
Friday.

Roussopoulos said that Karamanlis was due to arrive in Sarajevo at 9:30
a.m. local time, and an official welcoming ceremony would be held for
the Greek premier at the Council of Ministers building, followed by a
private meeting with Council of Ministers chairman Nikola Spiric at
10:45 a.m.

At 11:00, the prime minister will have talks with the and sign
bilateral agreements, followed by statements to the press and a visit
to the three-member presidium of Bosnia-Herzegovina.

At 1:00 p.m., Karamanlis will attend the inauguration ceremony of the
Greece-Bosnia-Herzegovina Friendship Building, followed by an official
luncheon with Spiric, after which Karamanlis will visit Camp Butmir,
the headquarters of the European Union Force in Bosnia and Herzegovina
(EUFOR).

Karamanlis is slated to depart early Tuesday for his return to Athens.

The Foreign Ministry in an announcement on Friday referred to the 33rd
anniversary of the Turkish invasion of Cyprus.

"Today are concluded 33 years since the day of the illegal Turkish
invasion of Cyprus. Thirty-three years of division and occupation of
more than one third of the territory of the Republic of Cyprus,
contrary to every meaning of law, without political or ethical basis.
In defiance of the times, a wall, the last in Europe, continues to
separate the Cypriot people, depriving them of the possibility of
co-existing peacefully in the European family," a Foreign Ministry
press release said.

"Thirty-three years later, the Republic of Cyprus, member of the
European Union, proceeds with self-confidence in the building of a
better future for all of the island's inhabitants. The need for finding
a solution for the reunification of Cyprus is however imperative. A
just, viable and operational solution, based on the UN Security Council
resolutions and the principles and values of the European Union.

"The basis for us to be led to a well planned resumption of the effort
for reaching a solution exists. It is the agreement of July 8, 2006.
This basis can be implemented, providing the Turkish Cypriot side
adopts the necessary, constructive for it stance," the press release
concluded.

In a statement on Friday, government spokesman Theodoros Roussopoulos
told reporters that the efficiency of the fire brigade and other forces
combatting fires was improved compared to the past. He had been asked
whether the government was satisfied with the way that hundreds of
fires around the country were being dealt with.

"We have an average of about 100 fires a day in the last weeks, an
effort is being made by thousands of fire-fighters, a superhuman effort
is being made by all state mechanisms that in the majority of cases
brings swift results. There are fires covering large areas in
inaccessible spots and in difficult weather conditions that are also
being dealt with, in some cases very quickly and in others not so
quickly, but in every case the performance of the participants in the
fire brigade and other forces is improved relative to the past," he
said.

According to the spokesman, fires were a sad phenomenon that all
Mediterranean forests were subjected to and which Greece had to endure
every year, sometimes more intensely as this year and others less so.

The spokesman also announced that Friday's press briefing would be the
last this month and that the next press briefing will take place on
August 20.

Main opposition PASOK leader George Papandreou concluded a visit to
fire-stricken villages in Corinth on Friday, following an earlier visit
to the island of Gyaros.

Papandreou arrived in a helicopter and was able to survey the damage
inflicted by the fire on Akrokorinthos, Solomos, Mapsos and Hiliomodi
in Tenea on his approach.

He also spoke with local residents that had lost property to the blaze
and met with the mayors of Corinth and Tenea.

In statements after the visit, Papandreou said the area had suffered a
huge catastrophe and expressed his support for the stricken residents
of the region, while claiming that there was a lack of coordination of
fire-fighting services.

"This is a time of responsibility," Papandreou stressed. "We don't want
any more words from the government, we want action," he added.

Main opposition PASOK party leader George Papandreou visited the former
prison island of Yiaros on Friday and paid homage to the Greek citizens
detained there as political prisoners during the seven-year colonels'
dictatorship in Greece between 1967-1974.

"Here, in the place of their exile and torture, we pay tribute to our
compatriots who resisted authoritarianism and fascism against those who
wanted to strike a blow against the democratic institutions,"
Papandreou said, adding that all those people were fighters for
democracy and for Greece. "We, today, are fighting for a just society
and do not forget their struggles and sacrifices," he said.

Papandreou also referred to Friday's 33rd anniversary of the Turkish
invasion of Cyprus and to those who fought and died or went missing in
the struggle for a free Cyprus, stressing that the efforts for a free
and independent Cyprus should continue.

Based on varous martial courts' rulings during the military junta, a
total of 22,000 people were detained on Yiaros, which also served as a
place of exile after the civil war in Greece following WWII.

The sessions of the 10th Symi Symposium ended on Friday evening on the
island of Paros with a speech given by main opposition Panhellenic
Socialist Movement (PASOK) leader George Papandreou who said that
"Greece must be a frontrunner in the green economy and this is why
PASOK has the environment as its top priority."

The PASOK leader said that "Greece these days is living through a
national trial," adding that "Greeks must know that PASOK is working
with a plan and with determination for Greece's future."

He further noted that "we shall create a decisive state and we shall
have a government which will serve the common interest."

Papandreou also referred to Ecumenical Patriarch Vartholomeos and to
his efforts for the protection of the environment.

In a visit to the shipyard repair zone at Perama on Friday, in the wake
of a fatal accident that claimed the lives of two workers earlier in
the week, Communist Party of Greece (KKE) General Secretary Aleka
Papariga urged workers to cast their vote for the KKE and "punish" the
two larger parties.

"You need to take them down a peg, make them realise that they don't
hold workers in the palm of their hand and cannot fool them all the
time," she said.

Referring to workplace accidents over the past few days that claimed
the lives of seven workers, she stressed that this was "a great
tragedy, equal to that we are subjected to these days with the forest
[fires]".

She accused both main opposition PASOK and ruling New Democracy of
failing to take steps that provided essential protection to the
workforce.

Communist Party of Greece (KKE) General Secretary Aleka Papariga is to
carry out a two-day visit to the Aegean island of Ikaria at the
weekend, accompanied by members of KKE's Central Committee.

She is to speak at a gathering at Evdilos Square in the island's
capital on Saturday evening at 21:30, while on Sunday she will attend
meetings with local government bodies arranged by KKE's local branch at
the old town hall at Aghios Kirikos.

Communist Party of Greece (KKE) leader Aleka Papariga on Friday
expressed her party's anger, displeasure and worry that "the immediate
independence of Kosovo and the imposition on Serbia of renunciation of
its territorial integrity are being methodised", following a meeting
with Serbian ambassador in Athens Liliana Bacevic.

Papariga charged that the US was "unscrupulously advancing this
measure", which she said would have serious consequences not only in
Serbia domestically but also in the entire Balkan region, and would
touch Greece itself.

She further accused the EU of hypocrisy and of acceptance of the
"American recipe in the Balkans", given that EU officials "have decided
that even if there is no UN Security Council resolution on Kosovo
forthcoming, the EU will send representatives to Kosovo for the
negotiations".

Papariga called on the two mainstream parties - the ruling New
Democracy (ND) party and main opposition PASOK - to take a clear
position on whether they consider the development being methodises as a
negative one or not.

The Education Ministers of Greece and Cyprus, Marietta Yianakkou and
Akis Cleanthous, termed their bilateral talks here on Friday as
"constructive." The talks, which ended on Friday, took place with the
participation of delegations from both the sides.

Greece's Education and Religious Affairs Minister Marietta Yianakou
stated that the main matters dealt with were the strategic planning for
the future through globalization, the investment in human resources,
the observation of developments, particularly in the European area of
higher education, the changes which must ne made and the exchange of
experience both between Cyprus and Greece as well as with third
countries.

Archbishop Christodoulos of Athens and All Greece was released from the
Aretaio Hospital in Athens on Friday, 42 days after his admission.

A frail and emotional Archbishop told reporters while leaving the
hospital that he is thankful to all those who prayed for his recovery
and expressed certainty that the people will continue to be on his
side.

The Archbishop will depart for the United States after August 10 to
undergo liver transplant operation.

A court in Athens sentenced three stockbrokers and a businessman to two
years imprisonment, with a three-year suspension, after finding them
guilty of stock manipulation committed in August and September 1999.

Another businessman was acquitted and charges against a third one were
dismissed based on the statute of limitations.

The case was retried in court following a Supreme Court ruling
concerning the specific defendants.

The employment rate in Greece reached 61 percent among people aged
15-64 last year, Eurostat said on Friday, compared with 64.4 percent in
the EU-27.

The EU executive's statistics agency, in a report, said that working
Greek men, aged 15-64, totaled 74.6 percent, while working women of the
same age totaled 47.4 percent. The gap between working me=n and women
was the second highest in the EU, after Malta.

In the EU-27, working men totaled 71.6 pct, while working women 57.2
pct, with Denmark (77.4 pct) and Holland (74.3 pct) recording the
biggest employment rates, while Romania (58.8 pct) and Slovakia (59.4
pct) the lowest rates.

The employment rate between people aged 55-64 in Greece was 42.3 pct in
2006 (43.5 pct in the EU-27), with employment among men at 59.2 pct and
women 26.6 pct.

Greeks work an average 40.7 hours per week, slightly up compared with
an average 40.5 hous in the EU-27, with workers in Holland (38.9),
Belgium (39) and France (39.1) working less, while Austrians and
Britons worked more (42.4 hours per week).

Part-time job remained not so popular in Greece compared with the rest
of Europe, with part-time jobs only at 5.7 pct in Greece, compared with
an 18.8 pct average in the EU-27. Part-time is more popular among women
(10.2 pct) than men (2.9 pct), compared with 32.7 pct and 7.7 pct in
the rest of Europe, respectively.

In Greece, 12 pct of workers were in the farm sector (4.7 pct in the
EU-27), 22.1 pct in the manufacturing sector (27.4) and 65.9 pct in the
services sector (67.9 pct in the EU-27).

National economy and finance minister George Alogoskoufis on Friday had
separate meetings with tourism development minister Fani Palli-Petralia
and with deputy culture minister for sports George Orfanos.

Petralia briefed Alogoskoufis on tourism-related issues, including
arrivals of foreign visitors to Greece, foreign exchange inflows from
tourism, and the course of the denationalisations programme in the
tourism sector and the operation of the Tourism Development Agency
(ETA). Petralia said that following the recent changes in the
composition of the ETA administration, the Agency was now proceeding at
a rapid pace.

Alogoskoufis also met with Orfanos to discuss matters concerning the
sector of sports.

Transport Minister Mihalis Liapis on Friday paid a visit to the Aegean
islands of Rhodes, Kassos and Karpathos in the Dodecanese island group,
where he was briefed on the progress of projects at the airports on all
three. Liapis was accompanied by Aegean Minister Aristotelis Pavlidis.

The first stop was on Rhodes, where the terminal is being expanded and
is expected to double the airport's capacity to handle passenger
traffic from current levels of 3.5 million passengers a year and
greatly improve the quality of its services.

Work is also underway to increase parking spaces for aircraft from 13
at present to 17 next year.

On Kassos, the minister visited the worksite for the construction of a
new terminal on the island, whose total budget is 2.9 million euros,
and new parking space for aircraft costing six million euros.

Work to extend the terminal is also underway on Karpathos, as well as
the construction of a new air traffic control tower and other airport
facilities costing a total of 24 million euros, which are set to be
completed by next June.

Completing his inspection, Liapis stressed that improve access to the
Dodecanese islands from the air was vital to improving the quality of
life for the islands' inhabitants and would help ensure the prosperity
of areas that were largely dependent on tourism.

Greece's current accounts deficit widened by 16.3 percent to 14.2
billion euros in the January-May period, the Bank of Greece announced
on Friday.

The central bank, in a report, attributed the negative development to
an increase in the country's trade deficit by 7.8 percent to 15.8
billion euros and decline in the current transfers surplus to 685
million euros this year from 1.5 billion euros in the corresponding
period in 2006. The services surplus rose to 3.8 billion euros from 3.4
billion euros over the same period, respectively.

The widening of the trade deficit by 1.1 billion euros reflected mainly
a bigger deficit in goods, excluding fuel and vessels (by 840 million
euros) and net payments for the purchase of vessels (by 523 million
euros), while net payments for fuel imports fell by 218 million euros.
Proceeds from exports grew by 7.4 percent, while payments for imports
rose by 8.3 percent in the five-month period.

The services surplus grew by 385 million euros reflecting mainly the
rise of net proceeds from transport services and to a lower extent
travel services (up 8.6 pct and 3.5 pct, respectively).

A lower surplus of the current transfers balance reflected higher net
payments by the general government to the EU in February.

The capital transfers balance recorded a surplus of 2.2 billion euros,
up 825 million euros compared with the same period last year, while in
the financial transactions balance, direct investments recorded a net
outflow of 2 billion euros in the January-May period.

In the portfolio investments category a net inflow of 13.9 billion
euros was recorded, while in the other investments category a net
inflow of 567 million euros was recorded.

The building materials cost index rose 6.5 percent in June from the
same month last year, the National Statistical Service said on Friday,
while the production price index rose by 3.4 percent in the second
quarter of the year, compared with the corresponding period in 2006.

The new orders composite index in the industrial sector (measuring both
domestic and foreign markets) fell by 7.8 percent in May compared with
the same month last year, the National Statistical Service (NSS) said
on Friday.

The service, in a report, also noted a 3.5-percent decline in the
turnover composite index in the industrial sector.

NSS attributed the 7.8 percent drop of the index to a 10.8-pct decline
in the capital goods orders index and a 10.3 percent fall in the
intermediate goods orders index in May. The durable goods orders index
fell 1.4 pct while the non-durable goods orders index rose 2.5 percent
over the same month.

The decline in the turnover index reflected a 6.4 pct drop in the
mining turnover index and a 3.5 pct fall in the manufacturing turnover
index.

Greek stocks fell sharply on Friday as investors took profits ahead of
the weekend at the Athens Stock Exchange. The composite index ended
1.17 pct lower at 5,058.86 points with turnover a strong 633.3 million
euros.

The 10-year benchmark bond (July 20, 2017) was the most heavily traded
security with a turnover of 1.365 billion euros. The yield spread
between the 10-year Greek and German bonds was 0.22 percent, with the
Greek bond yielding 4.72 pct and the German Bund 4.50 pct.

Futures contract prices ended the last trading session in the Athens
Derivatives Exchange with a discount, while turnover rose to 188.13
million euros on Friday.

The September contract on the FTSE 20 index was traded at a discount of
0.52 percent, while the August contract on the FTSE 40 index at a
discount of 0.28 percent.

Volume in futures contracts on the FTSE 20 index totaled 9,834
contracts worth 132.082 million euros, with 41,705 open positions in
the market, while on the FTSE 40 index volume was 1,228 contracts worth
42.154 million euros, with 1,954 open positions.

The remains found in Lake Vouliagmeni in 2006 belong to three American
citizens who disappeared while diving on September 9, 1978, the United
States Embassy in Athens announced on Friday.

The remains were positively identified as those of Sargent Donald
Michaud, Airman Jan Granroth and her brother Mark Granroth through
mitochondrial DNA sequencing tests carried out by a Department of
Defense Armed Forces Medical Examiner, an embassy announcement said.

The families of the lost divers have been contacted, while funeral
services with full military honours will be provided for all three over
the coming weeks.

The Embassy announcement thanked the "extraordinarily helpful and
unselfish Greeks" that took part in the recovery, which took several
months, stressing that the volunteer divers that brought up the remains
were "heroic in their efforts, at risk to their own lives and safety".

"On behalf of the government, and especially the families of the three
divers, we are enormously grateful to Mr. Lazanas and his colleagues,"
the announcement added.

Thanks were also offered to the Department of Forensic Medicine and
Toxicology of the Athens University Medical School, which carried out
an exhaustive examination of the remains, as well as the justice
ministry and a number of Greek officials and private individuals that
assisted the recovery in various ways.

"Without all these efforts, the families of the lost divers would still
be living in uncertainty and unresolved grief," the announcement
concluded.

The unprecedented devastation caused by hundreds of fires continued
throughout the country on Friday, while main opposition PASOK party
leader George Papandreou is expected to travel in a helicopter to the
village of Hiliomodi in Corinth, in the north Peloponnese, to visit the
most seriously affected regions.

The situation in Corinth has improved compared to last night but a
strong firefighting force is still in the area battling the flames. The
fire in Mani, southern Greece, has been placed under partial control
and is continuing to burn forestland in south Mt. Taigetos.

The fire in Chrisokelaria, Koroni, also in the Peloponnese, was
rekindled, while the PZL firefighting aircraft remain grounded because
they have reached the allowed flight time limit and are undergoing
maintenance.

A wildfire continues to burn for a third day in a remote area in Mt.
Grammos, in the prefecture of Kastoria, northwestern Greece.
Participaing in the firefighting effort, which is hampered by the
existence of several minefields in the region, are 13 firemen, 4 fire
engines and a helicopter.

Meanwhile, the fire that erupted at dawn in a farm area in Nikiti,
Halkidiki was placed under control by 12 firemen and 5 fire engines.

A third fire that broke out in a forest area in Petrokerasa,
Thessaloniki, on Thursday was quickly extinguished by fire-fighters.

The latest fires reported were in the old army camp near Malakasa,
north of Athens, where fire-fighting efforts are hampered by the
existence of unexploded munitions, and in the Mandalos shooting range
in Mt. Paiko, in the prefecture of Pella, northern Greece, which was
being battled by land and airborne forces and was reported to be under
control.

Fire at old army camp in Malakasa, north of Athens

A fire broke out at 14:20 in the afternoon near the old army camp in
Malakasa, an area with dense woodland to the north of Athens.

The fire is buring land designated as forest and dry grassland but the
fire brigade is alarmed because it has entered the area of the army
camp, where there are unexploded munitions and there is a danger of
explosions that prevents the 21 firemen on the scene from approaching.

The fire is currently being combatted by a fire-fighting helicopter
from above.

Fire at Dervenaki, Achaia, rekindles

Hundreds of acres of pine forest and arable expanses were burnt at
Dervenaki, Daikoptos, Achaia, in the Peloponnese, while also destroyed
was a country house, an old cars compound, old warehouses and barns.

The fire, which started on Thursday afternoon, began to ease on Friday
morning. However, shortly after 7 p.m. on Friday, the fire rekindled in
an inaccessible point, near the Patras-Corinth national highway and
rescue squad teams intervened to place it under control.

A fact-finding inquiry into last week's collision between a goods train
and a passenger train of the suburban railway Proastiakos on Friday
blamed the accident on human error and said that responsibility was
divided among three people.

Fifty people suffered light injuries as a result of the accident.

The report submitted by the fact-finding committee that was
commissioned by Transport Minister Mihalis Liapis and the management of
Hellenic Railways Organisation (OSE), which was finished in record
time, said that the Lykotripa station master was most to blame for the
accident, followed by the engine driver of the Proastiakos train and
then the station master in Athens.

An OSE report did not list the reasons why the three were considered to
blame for the accident, saying only that it was based on the records in
the tachograph of the two trains, the telegraph book of the Athens and
Lykotripa railway stations, interviews with staff on duty and witness
accounts.

The findings of the report will be forwarded to the appropriate OSE
services, which will launch disciplinary proceedings.

Hot weather and light to moderate northerly, northeasterly winds are
forecast throughout the country on Saturday, with wind velocity
reaching 4-5 beaufort. Temperatures will range between 19C and 41C.
Sunny weather in Athens, with winds reaching 3-4 beaufort and
temperatures ranging from 25C to 39C. Same in Thessaloniki, with
temperatures ranging from 24C to 40C.

The large number of wildfires, the political confrontation over their
causes and the fire-fighting plan, the main opposition PASOK party
ballots, Archbishop Christodoulos' release from hospital, and the new
draft law on taxation were the main front-page items in Friday's
dailies.

ADESMEFTOS TYPOS: "Greece is being burned down by Greeks - Who are the
arsonists".

[36] Papadopoulos: We pay tribute to those who sacrificed their lives
in 1974

NICOSIA (CNA/ANA-MPA)

Today our mind and our heart must be with those who lost their lives
defending and saving our national dignity, Cypriot President Tassos
Papadopoulos stressed here Friday on the occasion of the 33rd
anniversary of the Turkish invasion against Cyprus, which took place on
July 20th, 1974.

"I believe that today, our mind and our heart should be with those who
sacrificed their lives, defending with their sacrifice, our national
and human dignity", President Papadopoulos said.

His statement came after an official memorial service at Faneromeni
Church in Nicosia, for those who lost their lives during the Turkish
invasion, in the summer of 1974.

Present at the memorial service were also, among others, President of
the House of Representatives Demetris Christofias, members of the
Council of Ministers, political party leaders, MPs, Greece's Ambassador
to Cyprus Demetris Rallis, the National Guard and Police leaderships,
war veteran associations, relatives of those who died during the
invasion, as well as an all-party delegation of the Greek Parliament.

The Greek government was represented at the memorial service by Greek
Minister of National Education and Religious Affairs Marietta
Őiannakou.

In his statement, the President of the House of Representatives urged
all Cypriots to be united with a view to avert a new fait accompli in
Cyprus.

"Today's message should be our common struggle to avert any new fait
accompli in Cyprus, to free our country from the Turkish occupation and
from the illegal settlers, so that better days come for us", he said.

On behalf of the Greek government, Minister of National Education and
Religion said that the achievement of a just and viable solution of the
Cyprus problem is the common goal of the Greek and Cypriot
governments.

"Cyprus has made much progress, Cyprus is a member of the EU. What is
pending now is the achievement of a just solution and the reunification
of Cyprus, based on the EU principles", she added.

In his speech at the memorial service, Cypriot Minister of Defense
Christodoulos Pashiardes said that although time is working against the
Greek Cypriot side, "we must achieve a functional and viable solution"
and not just any solution for the sake of closing the Cyprus problem.

He also noted that while Greek Cypriots "commemorate their dead and
count again with a lot of pain their missing, their enclaved people and
the thousands of refugees, right beside us the Turks celebrate their
crime against Cyprus".

In the Turkish occupied areas of Cyprus many events are being held
Friday to "celebrate" the Turkish invasion of 1974, in the presence of
Turkish political and military officials.

Turkish troops invaded Cyprus on July 20, 1974, occupying 37% of the
island's territory, killing thousands of people, forcibly uprooting
some 200,000 Greek Cypriots, making one third of the island's
population, from their homes and properties while hundreds of people
are still missing.

The Republic of Cyprus became a full EU member state in May 2004.

[37] Papadopoulos: Talat avoids a meeting for the promotion of 8 July
agreement

NICOSIA (CNA/ANA-MPA)

Cyprus President Tassos Papadopoulos said here Friday that Turkish
Cypriot leader Mehmet Ali Talat continues to avoid having a meeting
with him, with a view to promote the implementation of the July 8
agreement.

In statements on the sidelines of an official memorial service in
Nicosia, for those who lost their lives during the Turkish invasion, in
the summer of 1974, and asked whether a date has been set for a meeting
between him and Talat, Papadopoulos recalled Talat's statement on
Thursday that he will respond to Papadopoulos' invitation for a meeting
when the time is right.

Invited to interpret this statement, Papadopoulos said that Talat
''continues his policy to avoid having any meetings until he manages to
arrange a meeting that will not fall within the Gambari process.''

President Papadopoulos and Talat agreed on 8 July 2006, during a
meeting in Nicosia in the presence of the then UN Under-secretary
General Affairs, Ibrahim Gambari, to begin a process of bicommunal
discussions on issues that affect the day-to-day life of the people and
concurrently those that concern substantive issues, both contributing
to a comprehensive settlement of the Cyprus problem.

Papadopoulos sent recently a letter to Talat asking for a meeting with
him, with a view to promote the implementation of the 8 July
agreement.

[38] Government denounces provocations by Turkish and Turkish Cypriots

NICOSIA (CNA/ANA-MPA)

Government Spokesman Vassilis Palmas denounced provocations by Turks
and Turkish Cypriots, during an event organised Thursday evening at
Ledra Palace, next to the buffer zone, by centre-right Democratic Party
to condemn the Turkish invasion of 1974.

''These are problems we are facing and are stemming from the invasion
and the occupation,'' he added.

Some Turkish settlers and Turkish Cypriots carrying ''flags'' of the
pseudostate and flags of Turkey, gathered at the occupied areas, near
the buffer zone, and hooted at those who attended the event, among
which was Cyprus President and former DIKO President Tassos
Papadopoulos.

''Such attitudes are unacceptable and of course they do not contribute
to the creation of a climate of trust between the two communities and
of preconditions for the achievement of a solution to the Cyprus
problem,'' Palmas said replying to questions.

''These are unacceptable actions which contribute to the division and
to the creation of conditions that maintain the status quo,'' he
added.

Palmas said that the presence of foreign deputies at celebrations
staged by the illegal regime in the Turkish-occupied northern Cyprus,
on the occassion of the 33rd anniversary of the Turkish invasion of the
island, is the result of efforts by the Turkish Cypriot side and Turkey
to upgrade the pseudostate in the occupied areas and of the
non-solution of the Cyprus problem.

[39] Cyprus government says US Undersecretary most welcome to visit
Cyprus

NICOSIA (CNA/ANA-MPA)

US Under Secretary of State for Political Affairs Nicholas Burns is
most welcome to visit Cyprus, Government Spokesman Vassilis Palmas said
here Friday, refraining from commenting statements by Burns, who
expressed hope that UN Secretary General Ban Ki Moon will undertake a
renewed effort to achieve a peaceful settlement of the Cyprus problem.

Burns told CNA that he looks forward to visiting Cyprus, ''hopefully in
September.'' He also noted that ''we hope that the Secretary General of
the UN will support a renewed effort by the UN to launch
negotiations,'' clarifying that he does not mean the July 8 2006
agreement signed between Cyprus President Tassos Papadopoulos and
Turkish Cypriot leader Mehmet Ali Talat.

''Mr Burns is most welcome to visit Cyprus,'' Palmas said, adding that
the schedule and the agenda of his visit will be discussed between the
US and the Cypriot government.

Asked about Burns' statement that his hope for a renewed effort by the
UN Chief did not concern the July 8 agreement, Palmas said ''it would
be meaningless to interpret some statements made by Mr Burns.''

''It would be wiser for the government to comment when the details of
his visit are finalized,'' he added.